South Africa office vacancy rates hit six-year low

South Africa’s commercial office market is experiencing a recovery, with national vacancy rates falling to approximately 11.8% to 12% in the third quarter of 2026. This represents the lowest vacancy level in over six years, down from a peak of 16.8% in mid-2022.

According to the South African Property Owners Association (SAPOA), the improvement is driven by positive tenant absorption and limited new supply. The recovery varies by building grade: A-grade vacancy has declined to 9.5%, while B-grade sits at 15.9%. C-grade offices saw the strongest quarterly improvement, dropping to 15.6%.

Despite the declining vacancy rates, the nature of office usage has shifted due to hybrid work models. Research from MRI Software Africa indicates that facilities management teams are increasingly focusing on space utilization and occupant satisfaction. Because attendance is less predictable, there is a growing need to use occupancy data to manage cleaning, maintenance, and budgets effectively, especially as many firms face unchanged or declining facilities management budgets.